An Online Currency Trading System that Works – Does One Exist?
Why should I even have to ask this question? Because not only are there dozens of different systems out there, but there is a rapid turn-over in that new online currency trading systems are regularly coming onto the market as the old ones, having been sold to death, are quietly withdrawn.
The truth is these systems make money for the people who sell them, both the original creators and their affiliates, and that, above anything else, is what drives them. There’s an insatiable market for these currency trading systems comprised mostly of people who have lost their job or face financial hardship and are desperately looking for an alternative way of earning money. So let’s take a look at what these systems are.
An online currency trading system can be anything from an expensive trading robot that makes all the trading decisions for you and implements them on your trading platform, down to a system devised by some remote trader that he posts in an online forum for anyone to download for free.
Most sellers of currency trading systems are affiliates who don’t actually know anything about financial trading. They cynically use the fact that over 95 per cent of new currency traders fail and lose all or most of the money in their account to try and persuade you to buy their particular system so you yourself can avoid that fate.
But what are the chances of anyone buying such a system avoiding the fate of the 95 per cent? Most of the people who fail have bought one or other of the systems on the market, so how do you know the system you’ve bought is a good one? The fact is that online currency trading requires not only a sound system but also the self-discipline to follow the rules to the letter.
Few people have this most desirable attribute. This works to the benefit of the sellers of these bogus systems, who invariably use a Money Back Guarantee to clinch the sale. The buyer feels more comfortable about parting with money he can ill afford by telling himself he can get it back if the system does not work for him within 90 days or so.
What usually happens is that after a while, when the system has not been bringing in the vast profits promised or, most likely, it has been losing money, the new trader tries to “catch up”, i.e. get his losses back on one or two trades on which he risks much larger amounts than the system tells him to. It’s very tempting to do this, and most new traders succumb and end up losing a big chunk of their money in one day.
As the terms of the guarantee require a record of trading to be produced with any refund request, the Guarantee itself is voidable on the part of the seller of the system who, of course, knows this is likely to happen and he therefore probably won’t have to honour his Guarantee.
So how can you, as someone new to fx online trading, avoid this fate? First, ask yourself whether you really need a “system”. This applies particularly if the system tries to tell you that you can make regular profits from day trading foreign exchange using a spread betting account. If it does then stay away. It’s almost impossible, especially for newcomers, to profit from day trading forex in this way. The market is simply too volatile. You need to be able to risk thousands to ride the volatility, and even then success is by no means assured.
Secondly, ask yourself how likely it is that the system you choose actually works at all. There are so many different systems, but still the success rate in forex remains abysmally low.
There is an easier option, which is to find someone who has been successfully trading the financial markets (not necessarily the currency markets) for years, and seek to copy what he does. Such people rarely trade forex. Finding one is not so difficult. Just go to our home page, fill in the form, and click on Submit.
Philip Gegan
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